TORONTO, March 4, 2015 -- Toronto Real Estate Board President Paul
Etherington announced that TREB Commercial Network Members reported 553,178
square feet of industrial, commercial/retail and office space leased through
the TorontoMLS system in February 2015. This result was up by almost 38
per cent compared to February 2014. Leased industrial space, which
accounted for approximately 80 per cent of all leasing activity, was the driver
of the year-over-year growth.

The average industrial lease rate,
for properties leased on a per square foot net basis with pricing disclosed,
was $5.26 – in line with the February 2014 average of $5.29. The average
lease rates for commercial/retail and office properties fluctuated to a greater
degree compared to last year, but this was largely the result of a different
mix of properties leased this year compared to last.

“While one month does not make a
trend, it was encouraging to see an uptick in the amount of square footage
leased in February compared to the same period last year. The fact that
the growth was driven by the industrial sector is particularly notable, given
that a good portion of the economy in southern Ontario is focused on the
production of goods for export south of the border,” said Mr.
Etherington.

The number of industrial, commercial/retail
and office properties reported sold through the TorontoMLS system in February
2015, at 37, was down in comparison to 52 sales for the same month in
2014. Average selling prices were up substantially, but this was mainly
due to a change in the size and location of properties sold.

“We are facing an uncertain
economic outlook in 2015. However, the lower value of the Canadian Dollar
relative to the US Dollar coupled with lower borrowing costs could be helpful
to businesses operating in the GTA, particularly those that are focused on
producing exports. It is possible that a growth in exports could lead to
a growth in demand for real estate as producers expand production,” continued
Mr. Etherington.

February 2015: Per Square Foot Net Commercial Leasing Summary

Lease Transactions Completed on a Per Square Foot Net
Basis with Pricing Disclosed on TorontoMLS

Leased Square Feet

Average Lease Rate

Feb.
2015

Feb.
2014

%
Change

Feb.
2015

Feb.
2014

%
Change

Industrial

437,587

318,684

37.3%

Industrial

$5.26

$5.29

-0.5%

Commercial

80,787

39,616

103.9%

Commercial

$18.40

$22.29

-17.5%

Office

34,804

43,110

-19.3%

Office

$11.43

$14.05

-18.7%

Total

553,178

401,410

37.8%

Source: Toronto Real Estate Board

February 2015: Commercial Sales Completed with Pricing Disclosed
on TorontoMLS